1.1 Definition and scope of study
Non fungible tokens (NFTs) are cryptographic and virtual elements on the blockchain with unique identification codes and metadata (author, signature, date, type...) that distinguish them from one another.
NFTs as we know them have been around since around 2014, but became globally known from 2016 and 2017 thanks to the first art collections using this technology: Rare Pepes, CryptoPunks and CryptoKitties.
A non-fungible good is a non-interchangeable good, meaning that it is unique and cannot be mistaken for another good. A commodity such as rice or a cryptocurrency such as Bitcoin are examples of fungible goods: they can be replaced by similar goods without the need to differentiate between them.this non-fungible cryptographic token is stored on a blockchain (usually Ethereum) to become the certificate of authenticity for a digital file attached to it. The digital file itself is fungible: an image, video or sound can be copied and duplicated, but not the cryptographic token that serves as its certificate.
Today, we tend to attach NFTs to the digital files they certify, and this is quite normal, but technically speaking, an NFT remains an original use of a smart contract: a token stored on the blockchain.the blockchain's operation enables it tocertify the validity of all transactions within it, and therefore the validity of a non-fungible token stored on it. It's also very easy to browse the blockchain to observe transactions, enabling anyone to verify the origin and complete history of an NFT.to greatly simplify matters, an NFT is a certificate of authenticity, immutably stored on the blockchain, making it more effective than a paper certificate of authenticity .
The explosion of the NFT market has affected the art market in particular. For example, the NFT of the digital work "Everydays: the First 5,000 Days", signed by American crypto-artist Beeple, sold for almost $69.3 million at auction, an unprecedented record.
Today, the global NFT market is estimated at over $41 billion. In France, the market is booming, as evidenced by the growing popularity of Sorare. The startup enables users to acquire and exchange soccer player trading cards in the form of NFTs. At the start of 2022, the startup was valued at over $5 billion, making it one of the major unicorns in the French ecosystem.
1.2 The global NFT market
Market size and market capitalization
Estimates of the size of the NFT market vary depending on what is taken into account. Transactions that take place "off-chain" (***), such as NFT art sales at auction houses, are often not included in the data.
At the end of ****, the magazine 'Les Numériques', tells ...
1.3 Covid 19, Bitcoin collapse and Ukraine
being totally dematerialized, NFTs didn't particularly suffer from the Covid-** crisis; on the contrary,they even managed to make the most of it by attracting new artists and new creations. Indeed, while the health crisis has had painful effects on many sectors, such as the business of the famous Japanese ...
2.1 Determinants of demand for NFT
NFT investors as a percentage of the population, by age and gender United States, ****, in Source: ****
NFTs have definitely entered the public consciousness. In a recent study conducted by The Harris Poll on behalf of Adweek, **% of Americans claim to be familiar with NFTs by the end of ****, compared with **% at ...
2.2 Demand by geographic and periodical breakdown
The graphs below represent the proportion of searches for a given term in a given region during a given period, relative to the time when it was most searched for (***).a higher value means that the proportion of that keyword's use in relation to the total number of search queries is ...
2.3 Demand spread across all population categories
Survey responses: "How likely are you to buy NFTs", by income type United States, ****, in Source: ****
The graph above shows that NFT purchases exist within all income categories, although they may evolve differently depending on the category. Indeed, it turns out that **% of people with an income of less than $**,***/year ...
2.4 Video games and play to earn: heralding new uses?
It's important to note that, while NFTs are often described as images or videos, these are merely uses. NFTs are therefore a technology, with as many possible applications and uses as we can imagine. The use of NFT simply creates scarcity and private property in a digital world. Today, NFTs linked ...
2.5 Market volatility over 2 years: an invitation to take a step back
Galaxy Digital's Head of Firmwide Research, Alex Thorn, said that since September ****, NFT sales trading volumes had been falling a little further each day, and were well away from the record level reached at the end of August **** : After September **, NFT transactions didn't even reach $*** million a day, whereas they had ...
3.1 How do I sell an NFT?
To sell an item like NFT, you need to go through an online platform that connects sellers and potential buyers. The process is as follows:
In general, you have to start by paying the platform to "mint" (***) an NFT. On most platforms, this sum is denominated in Ether, the native cryptocurrency ...
3.2 A technology based on blockchain
To ensure that NFT files are tamper-proof, we use the blockchain. The blockchain relies on a decentralized system to ensure the transmission of data, keeping track of all operations carried out in a dated manner. Today, there are several types of blockchain, including :
Proof of Work (***) Proof of Stake (***) Practical Byzantine ...
3.3 The environmental impact of NFT
An objectively harmful impact:
As NFT transactions are essentially based on the Ethereum blockchain, it seems relevant to take into account the evolution of the number of transactions on this platform to realize the reality of market volume.
Number of Ethereum transactions per day World, ****-****, thousands of transactions Source: ****
3.4 A still very risky market
While many investors turned to NFTs because they thought it was a simple opportunity to make a quick profit, this is far from the truth. According to Chainalysis, only **.*% of NFTs bought during the minting process and then resold on the platform generated a profit. The success rate on the secondary ...
3.5 The new ETHEREUM protocol in 2022
From September **, the Ethereum platform will be undergoing a major transition. Dubbed "the Merge", and repeatedly postponed due to technical difficulties, it involves switching the platform and its associated cryptocurrencyfrom a proof-of-work protocol to one based on proof-of-stake.[***]
With bitcoin, the production of blocks integrating transactions is carried out by 'miners' ...
4.1 Where to buy NFT?
NFTs are goods that can be bought, sold, exchanged and created online or on specific marketplaces. Generally speaking, the creator or owner chooses a specific price. NFTs are also traded at auctions. Here are some examples of marketplaces where NFTs are traded.
Foundationis a community-created marketplace based on a sponsorship system: ...
4.2 NFT's offering in 2022 and results (2nd quarter 2022)
Breakdown of sales by segment
Number of NFT sales by segment, *nd quarter **** World, ****, number of sales Source: ****
Volume of dollars traded
Breakdown of NFT offering value in ****, by segment World, ****, % (***) Source: ****
4.3 Link between primary and secondary markets
As the NFT market is fairly recent, it cannot yet be considered a mature market and, as such, is highly speculative. As we saw in *.*, **% of **-** year-old buyers and **% of **-** year -old buyers are investors in the original sense of the term : they buy in the hope of realizing ...
4.4 Focus on the art market
This sub-segment of the art market is perhaps the best known, or at least the one that most often makes the headlines when it comes to NFTs. NFTs are helping to boost art market sales, especially for contemporary art. Coupled with the consequences of the current health crisis, the NFT boom ...
5.1 NFT regulations in France
Current regulations in France
At present, there is still no legal framework for NFTs, which varies according to the rights assigned to them by the issuer.
However, there is a certain segmentation depending on the type of NFT used or sold:
When it comes to acquiring rights that are enforceable against ...
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The wealth management market - France
L'étude de Businesscoot m'a permis de bien dégrossir le marché sur le plan macro, en résumant les grandes tendances, pour un coût acceptable ! Merci, cela a pu contribuer à appuyer mon projet!
Merci beaucoup Nicolas pour votre commentaire :)
The wealth management market - France
Publicado en 21/11/2022 by Sylvain Lorman - Avocode SAS
J'ai trouvé la plupart des informations recherchés. J'aurais toutefois souhaité trouver un peu plus de profondeur sur certains aspects
The wealth management market - France
Statistical study a little succinct but satisfactory and serious It lacks comparisons in terms of figures (assets, inflows, by product) between the global market (including bank-insurance) for asset management and that of the CGP CIF brokers
The mortgage brokerage market - France
Publicado en 29/04/2022 by Cédric AUBOIRON - PROLOGIA
Quickly obtained and appreciable synthetic approach. For all that, the content remains quiterelevant!